NOVEMBER 2022

VOlUME 05 ISSUE 11 NOVEMBER 2022
Literature Review of Corporate Sustainability in Practices (The Implementation of Green Accounting in Modern Industries)
1Luh Putu Puji Trisnawati,2Lenny Christina Nawangsari,3Sigmin Johannes Lo,4Veithzal Rifai Zainal,5Erna Sofriana Irmaningsih
1,2,3,4,5Student of Doctoral Program Mercu Buana University Jakarta, Indonesia
DOI : https://doi.org/10.47191/ijsshr/v5-i11-48

Google Scholar Download Pdf
ABSTRACT

Environmental accounting practices in the company, one of which is implemented in sustainability accounting reporting. The issue of sustainable accounting is an absolute material to be used as a basis for decision making in the business world, to participate in preserving nature. To support this reporting, accounting has important reporting, because it requires hard work and the role of the company and the accounting firm to include an assessment of environmental saving elements in their work for the sustainability of their profession. Environmental accounting is a combination of all environmental costs into the company's financial statements and the importance of implementing sustainable development because it must be committed to carrying out its social and environmental responsibilities. It is interesting to discuss the relationship between environmental accounting and company performance. A total of 15 peer-reviewed articles have been reviewed and analysed, resulting in findings in the literature of previous articles. The findings of this review are that the application of green accounting affects the increase in profits. Other advantages of reducing insurance costs and capital costs can reduce total production costs, potentially increasing profits. This makes investors focus on the company's financial performance in considering investment decisions and corporate social activities. So many investors are interested in investing their capital to increase the company's profitability. High profitability reflects the company's ability to earn high profits for shareholders. The greater the profit earned, the greater its ability to pay its dividends, which has an impact on the value of the company

KEYWORDS: Environmental Accounting, Financial Performance, Firm Value

REFERENCES

1) Abdi, Y., Li, X., & Càmara-Turull, X. (2020). Impact of sustainability on firm value and financial performance in the air transport industry. Sustainability (Switzerland), 12(23), 1–22. https://doi.org/10.3390/su12239957

2) Bag, S., & Omrane, A. (2020). Corporate Social Responsibility and Its Overall Effects on Financial Performance: Empirical Evidence from Indian Companies. Journal of African Business. https://doi.org/10.1080/15228916.2020.1826884

3) Bahta, D., Yun, J., Islam, M. R., & Bikanyi, K. J. (2020). How does CSR enhance the financial performance of SMEs? The mediating role of firm reputation. Economic Research-Ekonomska Istrazivanja , 0(0), 1–24. https://doi.org/10.1080/1331677X.2020.1828130

4) Chang, T. W., Wang, K. H., & Lin, Y. H. (2020). Corporate sustainability: It’s mine! effect of green product psychological ownership on the environmental behavior and performance of employees. Sustainability (Switzerland), 12(24), 1–19. https://doi.org/10.3390/su122410514

5) Chiu, C. L., Zhang, J., Li, M., Wei, S., Xu, S., & Chai, X. (2020). A study of environmental disclosures practices in Chinese energy industry. Asian Journal of Sustainability and Social Responsibility, 5(1), 1–21. https://doi.org/10.1186/s41180-020-00036-1

6) Carandang, J. C., & Ferrer, R. C. (2020). Effect of environmental accounting on financial performance and firm value of listed mining and oil companies in the Philippines. Asia-Pacific Social Science Review, 20(1), 117–134.

7) ENDIANA, I. D. M., DICRIYANI, N. L. G. M., ADIYADNYA, M. S. P., & PUTRA, I. P. M. J. S. (2020). The Effect of Green Accounting on Corporate Sustainability and Financial Performance. Journal of Asian Finance, Economics and Business, 7(12), 731–738. https://doi.org/10.13106/jafeb.2020.vol7.no12.

8) Grassmann, M. (2020). The relationship between corporate social responsibility expenditures and firm value: The moderating role of integrated reporting. Journal of Cleaner Production, 124840. https://doi.org/10.1016/j.jclepro.2020.124840

9) Bowman, M., Debray, S. K., and Peterson, L. L. 1993. Reasoning about naming systems. .

10) Ha, N. T. Le, & Minh, B. T. (2020). Determinants of Firm Value in Vietnam: A Research Framework. International Journal of Science and Research, 9(1), 626–631. https://doi.org/10.21275/ART20204002

11) LAKO, A. (2018). CONCEPTUAL FRAMEWORK OF GREEN ACCOUNTING. ACCOUNTING

12) Liu, W., Shao, X., De Sisto, M., & Li, W. H. (2020). A new approach for addressing endogeneity issues in the relationship between corporate social responsibility and corporate financial performance. Finance Research Letters, May 2020, 101623. https://doi.org/10.1016/j.frl.2020.101623

13) Lusiana, M., Haat, M. H. C., Saputra, J., Yusliza, M. Y., Muhammad, Z., & Bon, A. T. (2021). A review of green accounting, corporate social responsibility disclosure, financial performance and firm value literature. Proceedings of the International Conference on Industrial Engineering and Operations Management, 5622–5640.

14) Maama, H., & Appiah, K. O. (2019). Green accounting practices: lesson from an emerging economy. Qualitative Research in Financial Markets, 11(4), 456–478. https://doi.org/10.1108/QRFM-02-2017-0013

15) Mei, X., Ge, Y., Huang, J., & Chen, Y. (2021). CSR and appropriation potential of firm innovative knowledge. European Journal of Innovation Management, ahead-of-p(ahead-of-print). https://doi.org/10.1108/ejim-05- 2020-0205

16) Mittelbach-Hörmanseder, S., Hummel, K., & Rammerstorfer, M. (2020). The information content of corporate social responsibility disclosure in Europe: an institutional perspective. European Accounting Review, 8180(May). https://doi.org/10.1080/09638180.2020.1763818

17) Pedron, A. P. B., Macagnan, C. B., Simon, D. S., & Vancin, D. F. (2020). Environmental disclosure effects on returns and market value. Environment, Development and Sustainability, 0123456789. https://doi.org/10.1007/s10668- 020-00790-2

18) Pham, H. S. T., & Tran, H. T. (2020). CSR disclosure and firm performance: The mediating role of corporate reputation and moderating role of CEO integrity. Journal of Business Research, 120(January 2019), 127–136. https://doi.org/10.1016/j.jbusres.2020.08.002

19) Phan, T. D., Dang, T. H., Nguyen, T. D. T., Ngo, T. T. N., & Hoang, T. H. Le. (2020). The effect of enterprise risk management on firm value: Evidence from Vietnam industry listed enterprises. Accounting, 6(4), 473–480. https://doi.org/10.5267/j.ac.2020.4.011

20) Qiu, S. (Charles), Jiang, J., Liu, X., Chen, M. H., & Yuan, X. (2021). Can corporate social responsibility protect firm value during the COVID-19 pandemic? International Journal of Hospitality Management, 93(June 2020), 102759. https://doi.org/10.1016/j.ijhm.2020.102759

21) Ramzan, M., Amin, M., & Abbas, M. (2021). How does corporate social responsibility affect financial performance, financial stability, and financial inclusion in the banking sector? Evidence from Pakistan. Research in International Business and Finance, 55(January 2019), 101314. https://doi.org/10.1016/j.ribaf.2020.101314

22) Rashid, A., Shams, S., Bose, S., & Khan, H. (2020). CEO power and corporate social responsibility (CSR) disclosure: does stakeholder influence matter? In Managerial Auditing Journal. https://doi.org/10.1108/MAJ-11-2019- 2463

23) Salehi, M., Mahmoudabadi, M., Adibian, M. S., & Rezaei Ranjbar, H. (2020). The potential impact of managerial entrenchment on firms' corporate social responsibility activities and financial performance: evidence from Iran. International Journal of Productivity and Performance Management. https://doi.org/10.1108/IJPPM-06-2019- 0259

24) Santosa, P. W., Aprilia, O., & Tambunan, M. E. (2020). The intervening effect of the dividend policy on financial performance and firm value in large indonesian firms. International Journal of Financial Research, 11(4), 408–420. https://doi.org/10.5430/ijfr.v11n4p408

25) Saputra, K. A. K., Manurung, D. T. H., Rachmawati, L., Siskawati, E., & Genta, F. K. (2021). Combining the concept of green accounting with the regulation of prohibition of disposable plastic use. International Journal of Energy Economics and Policy, 11(4), 84–90. https://doi.org/10.32479/ijeep.10087

26) Rehman, R., Riaz, Z., Cullinan, C., Zhang, J., & Wang, F. (2020). Institutional ownership and value relevance of corporate social responsibility disclosure: Empirical evidence from China. Sustainability (Switzerland). https://doi.org/10.3390/su12062311

27) Xu, S., Chen, X., Li, A., & Xia, X. (2020). Disclosure for whom? Government involvement, CSR disclosure and firm value. Emerging Markets Review. https://doi.org/10.1016/j.ememar.2020.100717

28) Yu, W., & Zheng, Y. (2020). Does CSR reporting matter to foreign institutional investors in China? Journal of International Accounting, Auditing and Taxation, 40, 100322. https://doi.org/10.1016/j.intaccaudtax.2020.100322

VOlUME 05 ISSUE 11 NOVEMBER 2022

Indexed In

Avatar Avatar Avatar Avatar Avatar Avatar Avatar Avatar Avatar Avatar Avatar Avatar Avatar Avatar Avatar Avatar